ScoreWhy is Gunze Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 44.09
2
Poor long term growth as Net Sales has grown by an annual rate of 1.36% and Operating profit at 10.18% over the last 5 years
3
Flat results in Dec 25
- ROCE(HY) Lowest at 2.75%
- DEBT-EQUITY RATIO (HY) Highest at 7.78 %
4
With ROE of 6.59%, it has a very expensive valuation with a 1.36 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 38.38%, its profits have risen by 1%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 38.38% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 70.84%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Gunze Ltd. should be less than 10%
- Overall Portfolio exposure to Footwear should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Footwear)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Gunze Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Gunze Ltd.
-100.0%
1.00
30.00%
Japan Nikkei 225
69.82%
2.78
25.51%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
1.36%
EBIT Growth (5y)
10.18%
EBIT to Interest (avg)
44.09
Debt to EBITDA (avg)
0.20
Net Debt to Equity (avg)
-0.01
Sales to Capital Employed (avg)
1.03
Tax Ratio
30.36%
Dividend Payout Ratio
76.18%
Pledged Shares
0
Institutional Holding
0.06%
ROCE (avg)
5.15%
ROE (avg)
5.42%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
Price to Book Value
1.36
EV to EBIT
22.29
EV to EBITDA
11.11
EV to Capital Employed
1.33
EV to Sales
1.19
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
5.98%
ROE (Latest)
6.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
Bullish
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -1.9% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.42 times
EPS(Q)
Highest at JPY 61.04
-4What is not working for the Company
ROCE(HY)
Lowest at 2.75%
DEBT-EQUITY RATIO
(HY)
Highest at 7.78 %
Here's what is working for Gunze Ltd.
EPS
Highest at JPY 61.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Highest at 2.42 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -1.9% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at JPY 1,845 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Gunze Ltd.
Debt-Equity Ratio
Highest at 7.78 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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